International Financial Reporting Standards (Ifrs) Convergence Effect To Accounting Conservatism

Rosy Armaini, Yevi Dwitayanti, Nurhasanah Nurhasanah

Abstract


IFRS Convergence (International Financial Reporting Standards) is to adapt domestic standards to conform to IFRS (International Financial Reporting Standards). Implementation of accounting standards closely related to the selection of accounting methods. Each accounting method has a different level of conservatism. Conservatism is an attempt to choose acceptable public accounting methods that slow down the recognition of revenues, accelerate the recognition of expenses, lower the valuation of assets, and elevate the assessment of debt. This research is important to be done in an attempt to prove empirically an increase in accounting conservatism in the period after the convergence of International Financial Reporting Standards (IFRS), when compared to the period before the convergence of International Financial Reporting Standards (IFRS). The sample used in this research is PT. Indofood SuksesMakmur, Tbk with the observation period of 2010-2014. Paired-samples T-Test analysis will be used with SPSS (Statistical Package for Social Science) program Version20.Study results shows that with the implementation of a financial accounting standards (IFRS Convergence) indicating a significant differences to Accounting conservatism value in PT. Indofood SuksesMakmurTbk.

Keywords


International Financial Reporting Standards (IFRS), Accounting Conservatism

Full Text:

PDF

References


--------. (2009). MengenalandMenyikapi Proses andHasilHarmonisasiStandardAccountingKeuangan (SAK) vs IFRS.

Basu, Sudipta. (1997). The Conservatism Principle and The Asymetric Timelinessof Earnings. Journal of Accounting and Ecconomics24: 3-37.

Choi, F, C.A. Frost, and G.K. Meek.(2002). International Accounting.Fourth Edition. Prentice Hall

Epstein, & Jermakowics. (2008). IFRS Policies and Procedures. John Wiley & Sons: USA

Financial AccountingStandards Board.(1980). Statement of Financial Accounting Concepts No.2, Qualitative Characteristics of Accounting Information.

Financial AccountingStandards Board.(1984). Statement of Financial Accounting Concepts No.5, Recognition and Measurement in Financial Statements of Business Enterprises.

Financial AccountingStandards Board.(2000). Statement of Financial Accounting Concepts No.7, Using Cash Flow Informationand present value in Accounting Measurements.

Jensen, M, and W. H. Meckling. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, Volume 3 No. 4: 305-360.

Landsman, Band Lang. (2008).International AccountingStandards and Accounting Quality.Journal of AccountingResearch, 46 (3).

Lo, W. E,.(2005). Pengaruh Tingkat KesulitanKeuangan Perusahaan terhadapAccounting Conservatism.SimposiumNasionalAccounting VIII: Solo .

Maman, S,. (2009). WacanaKonvergensi IFRS di Indonesia, sebagaiKepatuhanterhadap SMO. (Statement of Membership Obligation) International Federation of Accountants.

Mard, Michael J., et al. (2007). Valuation for Financial Reporting 2nd Edition.New Jersey : John Wiley & Sons, Inc.

Qu, XiaohuiandGuohua Zhang.(2008). Measuring the Convergence of National AccountingStandards with International Financial Reporting Standards: The Application of Fuzzy Clustering Analysis.Retrieved from http://www.ssrn.com/

Rahmany,&Purwanti. (2009). DampakKonvergensi IFRS terhadapBisnis. Retrieved from http://www.Okezone.com

Sparta. (2009). Nasib Historical Cost KiniDalamPengukuranAccounting.

Watts, R.L., (2003a). Conservatism in accounting part I: explanations and implications.Journal of Accounting and Economics.




DOI: http://dx.doi.org/10.24967/saburaiijssd.v1i2.248

Refbacks

  • There are currently no refbacks.


                                                                                                                                                                                                                                        


Indexed by :